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The Globe and Mail reported that after nearly four years, the investigation of “abuse of dominance” allegations against Loblaw Cos. Ltd. has been dropped by the Competition Bureau because of insufficient evidence.
The investigation looked into whether Loblaw’s supplier policies were hurting competition. The bureau said it was difficult to gather evidence as suppliers feared retaliation from Loblaw.
“We don’t want people to think, ‘Oh, everything’s fine.’ There are still systemic problems,” said Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers in the report.
He pointed out there’s a new charge Loblaw will levy on its suppliers, which will hit the independents and small grocers hard.
“It’s not just bad for us, it’s bad for everyone,” Mr. Sands he said in the Globe and Mail.
Loblaw’s spokesman Kevin Groh responded by saying they have been an open book, adding, “We have used the process to better understand the bureau’s concerns and observations, and have simplified the way we conduct our business with suppliers.”
